Fed Keeps Rates Unchanged, Sees Eventual Rise in 2015, 2016

Bond Purchases Are Reduced Again As Central Bankers See Signs of an Economy on the Mend

By

Jon Hilsenrath

Updated June 18, 2014 11:33 p.m. ET

Signaling their confidence that the economy is on track for growth strong enough to keep reducing unemployment, Federal Reserve officials nudged up their projections for short-term interest rates in 2015 and 2016, though they slightly reduced their outlook for rates in the longer-run.

In a statement released after the Fed's latest two-day policy meeting and a news conference by Chairwoman Janet Yellen, the central bank underlined the...